In the previous lesson, we saw how to handle irate customers by using the LEAD model.
In this lesson, we will explore how to say no to a request with the help of an illustration.
Browse the video to learn more and don’t forget to take the quiz at the end of the lesson.
A situation, where the request must be denied and simple workaround can be proposed.
Mr Siddharth Roy was in desperate need of an equipment loan.
Of late, his business had been doing well. However, Mr Roy had a less-than-stellar credit record. As a result, the Private Sector Bank that he banked with had refused him a loan. That’s when he had approached Galaxy Finance, an NBFC.
“Hello, Mr Roy”
Radhika worked as a senior sales manager with Galaxy. She had received the enquiry and had set up a meeting with Mr Roy.
As she spoke with Mr Roy, she realised that his previous defaults weren’t owing to carelessness, but were the outcome of the cash flow issues that almost every start-up faces.
She also recognised that he had learnt from his mistakes over the years; moreover, the improvement in his business finances was a testimony to his improved business management skills. She noticed that his cash flows had begun to look increasingly healthy and that he had a steady stream of business from reputed organisations.
He had bid for a large contract and stood to lose it if he was unable to prove higher installed capacity. This meant that he urgently required to purchase the necessary machinery, the cost of which was roughly INR 1 crore. He had estimated that he would need funding of INR 90 lakhs to procure the necessary machinery.
Despite his current situation, other lending institutions had refused to look beyond his past record.
Radhika could sense the desperation in his situation.
Hemmed in by organisational policies
However, based on a preliminary study of his financials, she realised that she would not be able to fund him the entire amount that he was requesting for. This was due to his not-so-great past credit record and also the relatively small size of his balance sheet. She knew that she would have to explore other means of bridging the shortfall in the amount financed for the customer.
“We are committed to partnering you in the best way that we can”
She spoke to the customer and informed him that the company was inclined to fund him and that they recognised that his past record was a thing of the past. She said they understood that all the signs pointed to the fact that the history was not likely to recur. However, based on the organisation’s policies, a loan of only INR 75 lakhs could be provided to the customer.
A disappointed Mr Roy began to plead with her. He expressed remorse for past defaults, and how he really needed the money. His whole vision for the business would get pushed back by five years unless this project went through, he concluded.